paragraph would result in the amount of the annuity, plus the amount of a supplemental annuity (after adjustment under subsection (j) (2) of this section) payable to an individual for a month being lower than the amount which would be payable as an annuity except for such preceding provision, the annuity shall be in an amount which together with the amount of the supplemental annuity would be no less than the amount that would be payable as an annuity but for such preceding provision.

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(b) (c) * (d) ***

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MONTHLY COMPENSATION

[(e) In the case of an individual having a current connection with the railroad industry, the minimum annuity payable shall, before any reduction pursuant to section 2(a)3, be whichever of the following is the least: (1) $5.000 multiplied by the number of his years of service: or (2) $83.50; or (3) 110 per centum of his monthly compensation:] (e) In the case of an individual having a current connection with the railroad industry, the minimum annuity payable shall, before any reduction pursuant to section 2(a)3, be whichever of the following is the least: (1) $5.35 multiplied by the number of his years of service; or (2) $89.35; or (3) 118 per centum of his monthly compensation except that the minimum annuity so determined shall be reduced in accordance with the first two provisos in subsection (a) (1) of this section, but shall not be less than it would be had this Act not been amended in 1966: ***

SUPPLEMENTAL ANNUITIES

(j) (1) An individual who is entitled to the payment of an annuity under section 2 of this Act (other than subsection (e) or (h) thereof) and had a current connection with the railroad industry at the time such annuity began to accrue, shall be entitled to have a supplemental annuity accrue to him for each month beginning with the month in which he has (i) attained the age of sixty-five and (ii) completed twenty-five or more years of service. The amount of the supplemental annuity shall be $45 plus an additional amount of $5 for each year of service that the individual has in excess of 25 years, but in no case shall the supplemental annuity exceed $70: Provided, however, That in cases where an individual's annuity under section 2 of this Act begins to accrue on other than the first day of the month, the amount of any supplemental annuity to which he is entitled for that month shall be reduced by one-thirtieth for each day with respect to which he is not entitled to an annuity under section 2. The supplemental annuity provided by this subsection shall, with respect to any month, be subject to the same provisions of subsection (d) of section 2 of this Act as the individual's annuity under such section 2. Except as provided in subsection (a)(2) of this section, the supplemental annuity provided by this subsection shall not be taken into consideration in determining or computing any other amnuity or benefit under this Act. (2) The supplemental annuity provided by this subsection for an in

dividual shall, with respect to any month, be reduced by the amount of the supplemental pension, attributable to the employer's contribution, that such individual is entitled to receive for that month under any other supplemental pension plan: Provided, however, That the maximum of such reduction shall be equal to the amount of the supplemental annuity less any amount by which the supplemental pension is reduced by reason of the supplemental annuity.

(3) The supplemental annuity provided by this subsection shall terminate with such annuity accruing for the sixtieth month following enactment of this subsection.

(4) The provisions of section 12 of this Act shall not operate to exclude the supplemental annuities herein provided for from income taxable pursuant to the Federal income tax provisions of the Internal Revenue Code of 1954.

ANNUITIES AND LUMP SUMS FOR SURVIVORS

SEC. 5. (a) ***

[(h) MAXIMUM AND MINIMUM ANNUITY TOTALS.-Whenever according to the provisions of this section as to annuities, payable for a month with respect to the death of an employee, the total of annuities is more than $36.30 and exceeds either (a) $193.60, or (b) an amount equal to two and two-thirds times such employee's basic amount whichever of such amounts is the lesser, such total of annuities shall after any deductions under subsection (i), be reduced to such lesser amount or to $36.30, whichever is greater. Whenever such total of annuities is less than $16.95, such total shall, prior to any deductions under subsection (i), be increased to $16.95.]

(h) MAXIMUM AND MINIMUM ANNUITY TOTALS.-Whenever according to the provisions of this section as to annuities payable for a month with respect to the death of an employee, the total of annuities is more than $38.84 and exceeds either (a) $207.15, or (b) an amount equal to two and two-thirds times such employee's basic amount, whichever of such amounts is the lesser, such total of annuities shall, after any deductions under subsection (i), be reduced to such lesser amount or to $38.84, whichever is greater. Whenever such total of annuities is less than $18.14, such total shall, prior to any deductions under subsection (i), be increased to $18.14: Provided, however, That the share of any individual in an amount so determined shall be reduced in accordance with the first two provisos in section 3(a) (1) of this Act except that the share of such individual shall not be less than it would be had this Act not been amended in 1966.

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(1) DEFINITIONS.-For the purpose of this section the term "employee" includes an individual who will have been an "employee," and

(10) The term "basic amount" shall mean

[(i) for an employee who will have been partially insured, or completely insured solely by virtue of paragraph (7) (i) or

(7) (ii) or both; the sum of (A) 49 per centum of his average monthly remuneration, up to and including $75; plus (B) 12 per centum of such average monthly remuneration exceeding $75 and up to and including (i) $450, or (ii) an amount equal to one-twelfth of the current maximum annual taxable "wages" as defined in section 3121 of the Internal Revenue Code of 1954, whichever is greater, plus (C) 1 per centum of the sum of (A) plus (B) multiplied by the number of years after 1936 in each of which the compensation, wages, or both, paid to him will have been equal to $200 or more; if the basic amount, thus computed, is less than $16.95 it shall be increased to $16.95;]

(i) for an employee who will have been partially insured, or completely insured solely by virtue of paragraph (7)(i) or (7) (ii), or both: the sum of (A) 52.4 per centum of his average monthly remuneration, up to and including $75; plus (B) 12.8 per centum of such average monthly remuneration exceeding $75 and up to and including $450; plus (C) 12 per centum of such average monthly remuneration exceeding $450 and up to and including an amount equal to one-twelfth of the current maximum annual taxable "wages" as defined in Section 3121 of the Internal Revenue Code of 1954, plus (D) 1 per centum of the sum of (A) plus (B) plus (C) multiplied by the number of years after 1936 in each of which the compensation, wages, or both, paid to him will have been equal to $200 or more; if the basic amount thus computed is less than $18.14, it shall be increased to $18.14;

(ii) for an employee who will have been completely insured solely by virtue of paragraph (7) (iii): the sum of [49] 52.4 per centum of his monthly compensation if an annuity will have been payable to him, or if a pension will have been payable to him, [49] 52.4 per centum of the average monthly earnings on which such pension was computed, up to and including $75, plus [12] 12.8 per centum of such compensation or earnings exceeding $75 and up to and including $300. If the average monthly earnings on which a pension payable to him was computed are not ascertainable from the records in the possession of the Board, the amount computed under this subdivision shall be [$40.33] $43.15, except that if the pension payable to him was less than [$30.25] $32.37, such amount shall be four-thirds of the amount of the pension or [$16.13] $17.26, whichever is greater. The term "monthly compensation" shall, for the purposes of this subdivision, mean the monthly compensation used in computing the annuity;

(iii) for an employee who will have been completely insured under paragraph (7) (iii) and either (7) (i) or (7) (ii) : the higher of the two amounts computed in accordance with subdivisions (i) and (ii).

(m) An annuity payable under this section to an individual, without regard to subsection (h) of this section or the proviso in the first paragraph of section 3(e) of this Act, shall be reduced in accordance with

the first two provisos in section 3(a) (1) of this Act except that the amount of the annuity shall not be less than it would be had this Act not been amended in 1966.

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RAILROAD RETIREMENT ACCOUNT

SEC. 15 (a) **

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RAILROAD RETIREMENT SUPPLEMENTAL ACCOUNT

(b) There is hereby created an account in the Treasury of the United States to be known as the Railroad Retirement Supplemental Account. There is hereby appropriated to the Railroad Retirement Supplemental Account, for the fiscal year ending June 30, 1967, and for each fiscal year thereafter, out of any moneys in the Treasury not otherwise appropriated, to provide for the payment of supplemental annuities in accordance with the provisions of section 3) of this Act, and for expenses necessary for the Board in the administration of such section 3 (j) as may be specifically authorized annually in Appropriation Acts, for crediting to such Supplemental Account, an amount equal to amounts covered into the Treasury (minus refunds) during the fiscal year ending June 30, 1967, and during each fiscal year thereafter, under sections 3211(b) and 3221 (c) of the Railroad Retirement Tax Act.

At the end of forty-eight months following the enactment of the Act establishing the Railroad Retirement Supplemental Account the Railroad Retirement Board, having surveyed the progress of such Account, shall make a determination of whether the balance in such Account together with the anticipated income to the Account for the next succeeding twelve months will be sufficient to provide for the payment of the supplemental annuities provided for in section 3 (j) (1) of this Act. In the event that such determination is that such balance and such anticipated income will not be sufficient to provide for the payment of all such supplemental annuities in the amounts specified, the Railroad Retirement Board is hereby authorized and directed to readjust the amounts of all such supplemental annuities, proportionately, so that such balance and anticipated income will be sufficient to provide for payment of all the supplemental annuities as so readjusted for the next succeeding twelve months.

[(b)] c At the request and direction of the Board, it shall be the duty of the Secretary of the Treasury to invest such portion of the amounts credited to the [Account] Railroad Retirement Account and the Railroad Retirement Supplemental Account (hereinafter jointly referred to as "Accounts" on "Railroad Retirement Accounts") as, in the judgment of the Board, is not immediately required for the payment of annuities, pensions, and death benefits. Such investments may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. For such purpose such obligations may be acquired (1) on original issue at the issue price; or (2) by purchase of outstanding obligations at the market price. The purposes for which obligations of the United States may be issued under the Second Liberty Bond Act, as

amended, are hereby extended, to authorize the issuance at par of special obligations exclusively to the [Account] Accounts. Such obligations issued for purchase by the [Account] Accounts shall have maturities fixed with due regard for the needs of the [Account] Accounts, and shall bear interest at a rate equal to the average market yield, computed as of the end of the calendar month next preceding the date of such issue, borne by all marketable interest-bearing obligations of the United States then forming a part of the public debt that are not due or callable until after the expiration of three years from the end of such calendar month, except that where such rate is not a multiple of one-eighth of 1 per centum, the rate of interest on such obligations shall be the multiple of one-eighth of 1 per centum nearest such rate: Provided, That the rate of interest on such obligations shall in no case be less than 3 per centum per annum. The Secretary of the Treasury may purchase other interest-bearing obligations of the United States, or obligations guaranteed as to both principal and interest by the United States, on original issue or at the market price only if he determines that such purchases are in the public interest, provided that the investment yield of such obligations shall not be less than the interest rate determined in accordance with the preceding sentence. If it is in the interest of the [Account] Accounts so to do, the Secretary of the Treasury may sell and dispose of obligations in the [Account] Accounts and he may sell obligations acquired by the [Account] Accounts (other than special obligations issued exclusively to the [Account] Accounts) at the market price. Special obligations issued exclusively to the [Account] Accounts shall, at the request of the Board, be redeemed at par plus accrued interest. All amounts credited to the [Account] Accounts shall be available for all purposes of the [Account] Accounts.

[(c) (d) The Board is hereby authorized and directed to select two actuaries, one from recommendations made by representatives of employees and the other from recommendations made by representatives of carriers. These actuaries, along with a third who shall be designated by the Secretary of the Treasury, shall be known as the Actuarial Advisory Committee with respect to the Railroad Retirement [Account] Accounts. The committee shall examine the actuarial reports and estimates made by the Railroad Retirement Board and shall have authority to recommend to the Board such changes in actuarial methods as they may deem necessary. The compensation of the members of the committee of actuaries, exclusive of the member designated by the Secretary, shall be fixed by the Board on a per-diem basis.

[(d)] (e) The Board shall include in its annual report a statement of the status and the operations of the Railroad Retirement [Account] Accounts. At intervals not longer than three years the Board shall make an estimate of the liabilities created by this Act and the Railroad Retirement Act of 1935 and shall include such estimate in its annual report. Such report shall also contain an estimate of the reduction in liabilities under title II of the Social Security Act arising as a result of the maintenance of this Act and the Railroad Retirement Act of 1935.